. Shore, Inc. bought 10% of the common stock of Beach, Inc. (a publicly traded company) on 12/31/18 for $50 million, with intent to hold for a long-term. At the investment date, Beachs recorded book value of all assets and liabilities was equal to their market values. As part of its original agreement to buy the stock, Shore is entitled to appoint four of ten directors of Beach as long as it continues to hold 10% of the common stock.

As of 12/31/19, the value of Shores holding in Beach, Inc. had increased to $85 million. For the year ended 12/31/19, Beach had net income of $5 million and paid total dividends of $3 million. What is the impact of Shores investment in Beach on its pretax income for the year ended 12/31/19 (Assume a ZERO % tax rate):

A.	$4,000,000 income
B.	$3,500,000 income
C.	$800,000 income
D.	$500,000 income
E.	None of the above